Raja Venkatraman recommends three stocks for 19 October
Market expert Raja Venkatraman shares his top stock picks for 19 October. Here’s his technical outlook and trade strategy.
Choppy markets always push us to evaluate new scenarios. Last week we saw the markets move higher but the constant volatile nature of the market forced us to look at every sector only for a limited timeframe. The strong sector rotation that emerges lead to some stock specific action which demanded that all were clear about what’s happening. Result season is underway and new can of worms will open up and we need to see how the market reacts to these new numbers especially when lockdown was in full swing.
NYKAA: Buy above ₹345, stop ₹330 target ₹379 (Multiday) ANANDRATHI: Buy above ₹2160, stop ₹2060 target ₹2350 (Multiday) HEXT: Buy above ₹585, stop ₹559 target ₹635 (Multiday) Between 12 October and 16 October 2026, Indian equities experienced a volatile but ultimately positive week, marked by sharp swings and sectoral divergence. On October 12, benchmarks slipped, with Sensex closing at 71,924.68 and Nifty at 22,363.35, dragged by weakness in PSU banks and telecom, though small-caps outperformed.
The following day, October 13, markets staged a strong rebound, led by IT stocks after HCL Tech’s earnings beat, with Nifty surging 1.6% to 22,721.95 and Sensex climbing 1,109 points to 73,033.78. Sectoral breadth was strong, with all indices in the green except pharma, while India VIX dropped nearly 8%, signaling easing near-term uncertainty. On 14 October, profit-booking returned, with Nifty slipping 0.44% to 22,622.70, reflecting cautious sentiment despite resilience in select sectors.
October 15 saw a sharp rally, with Sensex hitting 74,144 intraday and Nifty crossing 23,000, driven by large-cap buying in banks, IT, and Reliance. The surge coincided with global weakness in AI-driven markets like South Korea and Taiwan, prompting expectations of FII flows shifting back to India. The week ended on 16 October with benchmarks extending gains for a second straight session. Sensex rose 413 points to 74,729.27, while Nifty closed at 23,146.15.
IT stocks led the rally for the fourth consecutive day, with Tech Mahindra, TCS, Infosys, and HCL Tech among the top gainers. Metals and autos added support, though FMCG, energy, and select financials capped upside. Broader markets remained subdued, with midcaps and smallcaps largely flat. Overall, the week highlighted IT’s dominance as the key driver of recovery, supported by strong earnings momentum.
While crude oil remained elevated near $108 per barrel and inflation concerns persisted, resilience in large-caps and sectoral rotation helped benchmarks reclaim the 23,100 zone. Analysts noted that sustained earnings growth, particularly from financials, will be crucial in determining whether this rebound can extend further. The week began with some hesitation but translated quickly into some strong trends.
The constant bullish momentum aided by a short covering rally helped the acceleration. For the next several sessions the prices maintained the same range, neither breaking out nor breaking down. To be fair, there has not been any big news flow that can move the markets. Just some stuff that moves stocks. We had commented in earlier week also that sector rotation is now visible and that continued to be the case in the week ended as well.
Typically, sector rotation is a feature of a bullish phase and therefore one must maintain a bullish bias for now. The weekly Options expiry saw the indices get dragged higher, breaking the three-day range. Breadth was strong and volumes picked up on the rise so we can continue to look for the Nifty to continue higher. The Nifty seems to be heading towards the next set levels around 23500 and that can be kept as the target zone for now.
Overall, the week highlighted IT’s dominance as the key driver of recovery, supported by strong earnings momentum. While crude oil remained elevated near $105 per barrel and inflation concerns persisted, resilience in large-caps and sectoral rotation helped benchmarks reclaim the 23,100 zone. Analysts noted that sustained earnings growth, particularly from financials, will be crucial in determining whether this rebound can extend further.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
